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A federal judge in Texas issued a preliminary injunction on Friday against the enforcement of revised rules implementing Community Reinvestment Act.
The American Bankers Association, the Independent Community Bankers of America, the U.S. Chamber of Commerce, the Texas Bankers Asociation, alongside three other national and state associations, sued banking agencies in February for exceeding their statutory authority with their recent amendments to final rules implementing the CRA.
In a lawsuit filed in the Northern District of Texas, the groups asked the court to vacate the rules. They also sought a preliminary injunction preventing the agencies from enforcing the rules while the court decides the merits of the case.
District Court Judge Matthew Kacsmaryk on Friday granted the plaintiffs their request to pause implementation of the rules while the case moves forward. Among other things, Kacsmaryk said the plaintiffs had shown that banks would incur substantial and unrecoverable costs if the rules were to be enforced only to be struck down at a later date.